KI Developments

Kangaroo Island Airport Upgrade

Overview

The $18 million Kangaroo Island Airport Upgrade will lengthen and strengthen the existing runway, expand the apron and upgrade the terminal. The Kangaroo Island Airport upgrade will enable the airport to accommodate larger aircraft and subsequently allow for direct, non-stop flights from Melbourne, Sydney and Perth to improve access to the Island for tourists and freight. It will also enable businesses and residents on the Island to gain direct flights to major states of Australia.

This Airport was jointly funded by the South Australian Government with matched funding from the Federal Government’s National Stronger Regions Fund.

The Airport upgrade is expected to see at least 25,000 new visitors per annum within the first three years of operation.

Development Status: State and Federally funded project - underway

Progress:

The works have been split into four main packages:

Early, enabling works that completed by Council, addressing site access, preparation works together with upgrade works to the main alternate runway (15/33) including sealing which will be used during the period February to end March 2017. These works are complete.

Material raising and crushing: a considerable quantity of crushed rock is required for the upgrade and two contracts have been awarded – to NBS and Willson Earthmoving. Unfortunately NBS have gone into liquidation, which has caused considerable delays and cost issues for the project that are currently being addressed.

Airside works: all earthworks, drainage, lengthening, strengthening and sealing of the main runway (01/19) and associated taxiway, apron and lighting requirements. This work has been awarded to BMD took possession of site in early January. Works were originally due to complete in late April but the delays caused by the lack of crushed material will force works to suspend over winter and then recommence in Spring. At this stage the runway upgrades should be completed for 1 December 2017 service commencement.

Terminal works: construction of the new terminal building and associated works. The design is now complete, fully documented and tendered. Tenders have closed with competitive pricing received and the evaluation process is now in hand. It is expected that award will be made before the end of march. The expected completion date is end of December 2017 / early January 2018.

Kangaroo Island Golf Course Resort

Overview

Development authorisation has been granted by the Government of South Australia for an international golf course and resort on the southeast coast of Kangaroo Island. The golf course development will include a world class, 18 hole championship-length golf course and practice facilities, providing 22,000 rounds per year.

This development will include a clubhouse, with dining and function facilities, and a 180 bed premium hotel.

Development Status: Major Development - authorised by the Governor on 18 February 2016.

Progress: A request for variation to the development authorisation was approved by the Minister for Planning in early June 2017.

Bickfords Microbrewery and Distillery

Overview

In September 2015, the Minister for Sustainability, Environment and Conservation, The Hon. Ian Hunter MLC announced that a proposal from Bickfords Australia, to develop a visitor and function centre, microbrewery and distillery at Kingscote Wharf, would be assessed under the State Government’s Unsolicited Proposal framework

Development Status: Approved.

Progress: The company is in final negotiations with the State Government to purchase land in the wharf precinct at market value.

Kingscote Wharf Precinct

Overview

The Department of Planning, Transport and Infrastructure (DPTI) has opened the balance of the land (not included in the Unsolicited Proposal) on the Kingscote Wharf.

The land is currently under the ownership of the Minister for Transport and Infrastructure, The Hon. Stephen Mulligan MP.

Development Status: Open for Expressions of Interest

Progress: The Registration of Interest (ROI) process for the sale and future redevelopment of the Kingscote Wharf Precinct has concluded. ROI’s were sought from the open market and the process procured a number of submissions between 5 July and 12 September 2016. All persons who made a submission have been contacted and advised of the outcome of the ROI process.

The Kingscote Wharf precinct will continue to remain on the open market to leverage any ongoing and enhanced investor interest in the Island. Where proponents are existing tenants on the Wharf, current agreements will remain in place.

More information: Office of the Commissioner for Kangaroo Island Website

American River Resort

Overview

A 4-star resort is being proposed for American River. The resort is expected to feature:

tourist accommodation and facilities

function and conference facilities

retail premises

nature based activity centre

kid’s clubhouse

commercial premises

maintenance facilities

160 hotel rooms with 40 individual villas.

A commercial marina and associated development has been removed from the declaration.

Development Status: Major Development - authorised by the Governor on 27 January 2017.

Kangaroo Island Plantation Timber Deep-Water Wharf at Smith Bay

Kangaroo Island Plantation Timber is proposing the development of a deep-water wharf and facilities to accommodate bulk-shipping services to export timber and other Kangaroo Island produced directly from the Island. It is proposed that this is a multi-user facility on Kangaroo Island, which will open avenues for freight transport.

The $30 million development, which was announced on 16 February 2017 and will be assessed as a major development, is proposed to include:

A Development Application was received from Kangaroo Island Plantation Timbers (the applicant) in March 2017, and was referred to the Development Assessment Commission (the Commission) for examination in accordance with the requirements of the Development Act 1993.

The Commission has determined that the proponent must prepare an Environmental Impact Statement (EIS) in respect of the proposal.

The guidelines outline the key issues which the proponent must address as part of the Environmental Impact Statement and major development assessment process.

Once the Environmental Impact Statement is prepared, it will be released for public consultation for a period of 30 days, which will include an open house event with the Kangaroo Island community.

Following the close of the consultation period, the proponents of the development will review all comments made and prepare a response to address all the issues raised in the submissions.

The guidelines document is available, without cost, from the following locations:

Undersea Cable

Overview

Kangaroo Island’s energy is currently provided through an ageing undersea cable from the mainland. In partnership with SA Power Networks (SAPN), a submission for the 2015-2020 Regulatory Period has recently been accepted by the Australian Energy Regulator (AER) for the replacement of this cable prior to its failure.

The existing radial 33kV submarine cable that supplies Kangaroo Island is nearing its average life expectancy of 30 years.

In 2014, SA Power Networks estimated an initial cost of $45.6 million for the replacement of the cable.

SA Power Networks has considered other non-network options for the provision of energy as part of the AER process. These options are outlined in the Non-Network Options Report.

Install a new 33kV submarine cable from Fishery Beach to Cuttlefish Bay in 2018 ($21.9 million).

Development Status: Replacement in 2015-2020 Regulatory Period. Final Project Assessment Report completed that sets out preferred option for cable replacement.

Progress:

SA Power Network’s Final Project Assessment Report was finalised in December 2016 stating a preference to install a new 33kV submarine cable from Fishery Beach to Cuttlefish Bay in 2018 at a capital cost of $21.9 million.

In February 2017, the Kangaroo Island Council and the Office of the Commissioner for Kangaroo Island lodged a Dispute Notice to the Australian Energy Regulator (AER) on the basis that not enough option value was given to the community’s preferred option (Option 8 in the FPAR). This Option was to install a new 66kV submarine cable from Fishery Beach to Cuttlefish Bay in 2018.

AER found that SAPN had "had not properly quantified the market benefits associated with the 66kV cable option....However, additional analysis showed that the inclusion of a 'high demand' scenario would not change the outcome of this RIT-D assessment. Therefore, the AER has concluded that SA Power Networks is not required to amend its FPAR." More information on this decision can be found here.

The Dauncey

OverviewWith the anticipated tourism boost from the new airport, plans have been submitted for a proposed 109 room hotel in the main township of Kingscote, Kangaroo Island.

The brand new 4.5 star hotel proposes a la carte dining adjacent the hotel in the heritage building. The hotel’s top two floors will have views of Nepean Bay.

Development Status: Lodged with the State Coordinator General. KI Council has conditionally indicated its support for the proposal.

Emu Bay Holiday Village

OverviewA housing development is proposed for Emu Bay by the Amadio Group that would include 79 allotments of 1500m2 allotments, which would be comprised of residential and holiday accommodation. In addition, an adjacent two hectare section of land would be home to a Holiday Village development that would include individual architecturally designed villas, accommodating 200 or more guests.

A restaurant, cafe, health spa and other leisure facilities are expected to be included in the Holiday Village development. Opportunities to use renewable energy sources to power the site would be explored following development approval.

Development Status: Consents have been issued by the Kangaroo Island Council with titles to be cleared upon satisfaction of all conditions of consent

Aurora Ozone Hotel Expansion

OverviewAurora Ozone Hotel is the original foreshore hotel in Kingscote. Part of the Aurora Group, it is managed by 1834 Hotel Group that operates hotels across Australia.

With the recent announcement of the Kangaroo Island Airport Upgrade, the Aurora Ozone Hotel is looking to expand its operation by adding 45 4-star rooms. This would increase the hotel’s capacity by between 16-32,000 bed nights per year. This $15 million investment would create a significant boost to Kangaroo Island’s accommodation capacity, particularly during peak tourist seasons.

Development Status: Approved pending agreement on the provision of infrastructure by the proponent.

To find out more about Major Development applications and how they are assessed visit the SA Government website. A summary of the process is detailed in the below flow chart.